Business, international

AUSTRIA: RECORD RESULTS FOR ERSTE BANK

Article Abstract:

Austrian Erste Bank expects a cost income ratio of 67% in year 2000 and 66% in 2002, down from 71.8% in 1998 and 70.1% in 1999. Return on equity is to be raised to 14% by year 2002 from 12.1% in 1999 and 10.5% in 1998. In 1999 Erste Bank generated its best ever result on the operating level. Preliminary figures suggest that operating profit according to IAS amounted to EUR 350.7mn, up 6.1%. Group profit for the year surged 23.4% to EUR 164.6mn. Pre-tax profit increased 17% to EUR 241.5mn. Provisions for bad debts were increased by more than 25%. The improvement of results is attributed to a cost-cutting programme, which involved the reduction of staff by almost 10% to 8,416 jobs.

AUSTRIA/GERMANY: SPANGLER PLANNING EXPANSION

Article Abstract:

The Austrian Salzburg-based private bank Spangler & Co AG is considering to set up a branch in Germany. The new branch would probably be located in Rosenheim. 80% to 85% of the bank's clients are Austrians. At the end of year 2000 the bank that specialises in asset management expects to manage customer portfolios totalling Sch 35bn. Balance sheet total Sch 6.7bn. Spangler's capital investment company Spangler Kapitalanlagegesellschaft has a volume of Sch 30.8bn in 54 investment funds.

MALTA: AUSTRIAN SAVINGS BANK SET UP BRANCH

Article Abstract:

Sparkasse Schwaz, is the third Austrian bank to be represented in Malta. The bank has set up a fully-owned subsidiary on the island. With a balance sheet total of just under Sch 10.6bn, Sparkasse Schwaz is among the ten biggest savings banks in Austria.